Growth of credit to economy accelerates notably in October
Credit to the economy rose by 1.8% in October, which exceeds the September figure (+0.6%).
As in the previous months, the growth in lending was mainly driven by companies. Long-term corporate loans in rubles went up most notably. The rise in household borrowings was moderate, fuelled primarily by mortgage loans amid decreasing market rates in this segment.
Broad money increased by 1.7% in October, which was comparable to the growth rate of credit to the economy. The amount of cash in circulation continued to grow. Simultaneously, the contribution of households’ ruble time deposits to the money supply growth was slightly up. This may be due to depositors’ desire to lock in a slight increase in short-term deposit rates after the key rate meetings in September–October.